U.S. Middle Market Companies Set Financial Growth Records in 2023

Despite record growth in 2023, U.S. middle market companies remain cautious, grappling with inflation, cybersecurity threats, and insurance coverage gaps, reveals a Chubb and NCMM report.
By: | March 4, 2024

Middle-market companies in the U.S. have set financial growth records in 2023, despite concerns over inflation, cybersecurity threats, natural catastrophes, and insurance coverage gaps, according to a new report by Chubb and the National Center for the Middle Market (NCMM).

The 2023 Year-End Middle-Market Indicator (MMI) reveals that average revenue for middle-market companies rose by 12.4% compared to the previous year, with 55% reporting growth of 10% or more. This is the highest growth since the MMI began surveying companies in 2012. However, despite this robust growth, companies remain cautious about emerging risks, with inflation identified as the top concern.

“Middle-market companies are a bellwether for the overall health of the U.S. economy, and our survey shows they are posting record growth,” said Ben Rockwell, Division President, Chubb Middle Market. “The findings of the MMI provide relevant direction and insights for agents and brokers to best counsel middle market companies in navigating and mitigating the risk management pressures with this critical business segment.”

The report also noted the areas of risk or disruption that middle-market firms felt well equipped to respond to, which included inflation, catastrophic incidents and cybersecurity threats.

Managing cybersecurity looms large for middle market companies, with 33% identifying insufficient cybersecurity protection as a concern. Other findings include:

  • 62% of survey respondents indicated cyber security as one of their top concerns factoring into their insurance purchasing decisions.
  • 47% believed they had adequate cyber insurance in place.
  • 52% acknowledged that they needed or were considering the coverage.

Nearly half (48%) said severe weather events are a top three factor in their insurance purchasing decisions. Over half of firms (53%) indicated they are completely or very prepared for disruption from catastrophic incidents. The MMI confirmed the importance of developing business continuity plans, as 44% of firms say they only recovered partially or not at all from an operational disruption.

“Middle-market companies can benefit from the expertise and knowledge their agent or broker possess in preparing for short- and long-term catastrophe events,” said Michelle McLaughlin, Executive Vice President and Chief Underwriting Officer, Chubb Middle Market. “This advice can translate into securing adequate coverage protection, risk mitigation strategies, business continuity planning and physical risk assessments for middle market companies achieving a more protected future.”

Middle-market companies acknowledge that their overall needs for particular coverages were greater than what they had envisioned in their initial planning efforts. In terms of only adequacy and needs, respondents shared the following:

  • Multinational – 36% said they were adequately covered, but 47% indicated they need or are considering additional protection.
  • Environmental (pollution liability) – 40% said they were adequately covered, but more than half (51%) said they need or are considering additional protection.
  • Cyber insurance – 47% said they were adequately covered, but 52% indicated said they need or are considering additional protection.

Read the full report here. &

The R&I Editorial Team can be reached at [email protected].

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